Self-Employment Support Scheme Advice

Self-Employment Support Scheme Advice

28 Mar 2020


Self-Employment Support Scheme

This month The Chancellor released details of a new scheme to support self-employed individuals through the Coronavirus pandemic. The full details of this scheme are not yet available, but this is what we know so far.

For details of the guidance issued by the government on this please visit: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

To qualify for the scheme:

• You must be self-employed or a member of partnership and generate over 50% of your total income from this source.
• Your must have submitted a tax return for 2018-19. This means that currently no support is available for people who started to trade post 6 April 2019.
• You must have traded in 2019-20 and expect to trade in 2020-21.
• Either your trading profits for 2018-19 were less than £50,000 or your average profits for 2016-17, 2017-18 and 2018-19 are less than £50,000.
Support available to qualifying individuals:

• A taxable grant of 80% of average monthly profits will be available up to a maximum of £2,500 per month.
• The scheme will currently run for three months and the grant will be paid in one lump sum in June.

Practicalities:

• You cannot yet apply for the scheme
• HMRC will contact all impacted individuals directly and ask them to complete a form.
• Anyone who has not yet filed their 2018-19 tax return has until 23 April to do so or they will not qualify for the scheme.

At this point the only support available for limited company directors remains the Coronavirus Job Scheme as this scheme does not extend to them.

The HMRC system is not yet up and running and the UK government say they will contact individuals directly shortly.

 

For more small business advice or help please see my main page www.kieranperry.com